CWG funds' 'misuse': Railways seek clarification

As controversy rages over the alleged misuse of funds in the Commonwealth Games, Indian Railways, a leading partner in the Games, sought on Wednesday a clarification from the organising committee over utilisation of funds for the mega event.

Railways has pledged Rs 100 crore (Rs 1 billion) for the Games and a memorandum of understanding is expected to be signed between the public sector unit behemoth and the organising committee shortly.

Railways Ministry sources said the clarification has been sought in the backdrop of reports of shoddy deals for procurement of equipment and other projects.

The sources indicated that the ministry might rethink its pledged support to the Games if it is not satisfied with the reply of the organisers.

Caught in a web of corruption scandals and under intense pressure from the government, the organising committee has already been forced to form a three-member panel to probe allegations of irregular financial transactions with a little-known UK-based company.